Definition
Net income ratio is the financial ratio comparing net income to total revenue or assets. Treat it as a number you can compute and argue about, not a slide decoration. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Net income ratio is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Financial ratio comparing net income to total revenue or assets.
Common mistake
Using Net income ratio as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Net Income
Company's total profit after all expenses and taxes have been deducted.
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Net income margin
Percentage of revenue that remains as net income after all expenses.
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Net profit margin
Percentage of revenue that remains as net profit after all expenses.
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Net Revenue Retention (NRR)
How revenue from last year’s customers changed after expansion, contraction, and churn.
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